Connecticut Comptroller Lembo sets state deficit at $31.6 million

Published 1:15 pm, Friday, January 2, 2015

HARTFORD >>Connecticut is on track to end the current fiscal year with a $31.6 million budget deficit, State Comptroller Kevin Lembo said Friday.

In a letter to Gov. Dannel P. Malloy, Lembo said the state’s deficit has receded by $13.2 million from last month’s estimate. He credited a decrease in state spending in October and November. He said the trend in reducing statewide spending must continue into future months.

“While there has been some improvement in key economic indicators, current revenue collections do not indicate a positive change to the consensus projections,” said Lembo, referring to the estimated state revenue forecast issued by Malloy’s budget office and the legislature’s Office of Fiscal Analysis. In November, the two offices projected a $99.5 million revenue shortfall for this fiscal year, which ends June 30.

They also predicted $1 billion deficits in each of the next three fiscal years.

Malloy announced in November he was trimming $54.6 million from numerous state agencies to balance the state’s approximate $20 billion budget. Malloy’s budget director also called on agency heads to reduce their expenses and limit new hiring to only essential personnel.

Malloy tried to downplay the significance of the mid-year budget cuts, predicting the state would eventually end the fiscal year with a surplus.

In his report to the governor, Lembo also reported advance retail sales were up 5.1 percent in November from the same time last year. Auto sales experienced the strongest growth. Gas stations experienced the largest sales decline due to falling prices.